Zen Ltd. issued 10,000 Equity shares of Rs. 10 each at a premium of Rs. 3 per share payable as:
`{:("On Application",,"Rs. 4,"),("On Allotment",,"RS. 5 (including premium),"),("On First Call",,"Rs. 2,"),(,,),(,,):}`
Application were received for 12,000 shares.The company made pro rata allotment to all the applicants. One shareholder who was allotted 900 shares paid the entire amount with allotment while another shareholder who had applied for 1,200 shares, failed to pay the allotment money and on his subsequent failure to pay the first call his shares were forfeited.
Of the forfeited shares, 800 were reissued at Rs. 7 per share.
You are required to prepare:
(i) Shares Allotment Account.
(ii) Securities Premium Reserve Account.
(iii) Shares Forfeiture Account.
(iv) Calls-in-Arrears Account.
Answers
Following are the accounts for this question:
(i) Share allotment account
particulars amount particulars amount
To share capital a/c 20,000 By share application a/c 8,000
To securities premium a/c 30,000 By bank a/c 37,800
By calls-in-arrears a/c 4,200
Total 50,000 50,000
(ii) Securities premium reserve account
particulars amount particulars amount
To calls-in-arrears a/c 3,000 By share allotment a/c 30,000 30,000
To balance c/d 27,000
Total 30,000 30,000
(iii) Shares forfeiture account
particulars amount particulars amount
To share capital a/c 800 By share capital a/c 4800
To capital reserve a/c 3,040
To balance c/d 960
Total 4,800 4,800
(iv) calls-in-arrears account
particulars amount particulars amount
To share allotment a/c 4,200 By share capital a/c 3,200
To shares first call a/c 2,000 By securities premium
reserve a/c 3,000
Total 6,200 6,200